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Thoughts on goin into business with someone close to you

10-29-2012, 11:58 PM

So the fellow I am looking into going into business with is a friend that I have known for 21 years. And I am 21 years old...So I would trust the guy with my life as well as trust his opinions and advice. I'm just curious on what yalls opinions on going into business with someone close are. Good idea, bad idea, how to handle any situations ect. . .

Also He already has the business somewhat established and i am joining in order to help expand the business

Just kinda talking and thinking out loud really. Out of anyone I know I feel like he is the best choice to join a business with. Had a chance to go into a business with a guy I have known for a few months and just kind of went with my gut.

It's cheaper for any business to hire help to expand. Bringing on a = partner in the business in my opinion is a bad idea. Too much that can and will go wrong.

Having a partner means the business will need to pick up twice as much work right off the bat to even break even where your friend is at now by himself. He has already invested in the business so their is a grey area that you both will have to agree what it's worth if you do go in to a partnership.

I would say, start your own business and you both can help each other out when needed until you decide you need to hire an employee because your own business has grown to that point.

Comment

You guys need to sit down and list all the responsibilities, and who is in charge of taking care of certain problems.

A persons position inside of a company should be justified, and also organized.

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Some partners have someone on the field, while the other works in the office - but I'm sure that's not necessary right now for a smaller company - you can both work in the field but some how split of duties.

Advertising, sales, customer relations, and equipment maintenance are all good examples.

Comment

I think a big reason why the friends going into business situations tend to work out so terribly is because friendship is built on everything that is the complete opposite of business. They are opposites. They are fire and water.

If you have a friend, you might go out to eat and offer to pay for dinner or they might do that for you. Friendship is based on helping and giving. You help your friends out and they help you out. If they do something and you offer to pay them, they tend to refuse and the same holds true for the other party.

With that said, I'd suggest leave the two worlds separate. If you want to learn a bit about the business, offer to help your friend out from time to time for free so you can learn. Beyond that, if you want your own business, just do your own thing.

You wouldn't go after the same girl your friend liked because you value your friendship and you will find the same holds true with business.

Comment

NEVER go into business with someone else.I tried just doing side work with my brother-in-law.I spent alot of money reinvesting in tools,trailers,etc.When he blew all of his half and wore all of my tools out.I've know mutiple business partners here from millionairs to average joe's and it never works.The richest guy always ends up with the company,or the joe's never talk again enemys for life.

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EVERYONE here is very Smart and probably has some experience with this some way or other....Even me! I started off with my father-in-law. the answer is very simple here..... It wasn't hard for me to split our customers and we had no issues on a personal level but financial responsibilities seem to get all Jacked up along the way!